The results are in. The fifth annual CalAPA "Better or Worse" survey is showing a sharp rise in optimism, even though there still remains a healthy dose of skepticism about prospects for 2015. The single-question, non-scientific poll of more than 2,400 "Asphalt Insider" newsletter subscribers, conducted earlier this month, marked the second straight year of rising positive feelings for the new year, with 51 percent of respondents saying that 2015 will be better than 2014. That compares to 34 percent last year and only 25 percent in 2012. A total of 194 people took the survey. It was the first time in the history of the survey that the "better" choice surpassed 50 percent. The percentage of respondents who predicted next year will be worse than this year also continued to drop slightly to 14 percent, compared to 19 percent last year and 21 percent in 2012. A sizable number of votes fell into the "about the same" category, with 32 percent predicting that 2014 will be about the same as 2013, compared to 42 percent last year and 41 percent in 2012. The percentage of respondents who said they didn't know or did not have an opinion reached a new low for the survey: 1 percent. The survey question is purposefully vague: "For your company or organization, how do you think 2015 will compare to 2014?" However, most of the voluntary comments offered up by survey respondents centered around how much work is expected in the coming year. The answer varied by company, agency and region, reflecting the size and diversity of California's economy, which if it were a country would rank as the world's eighth largest. "Lower volume of available Caltrans work will keep number of bidders high and margins low," wrote one producer member. Added another: "While overall revenues may continue to improve in 2015, the shortfall in funding and competitive pressure will keep margins about the same as 2014." As economists have noted, the slow economic recovery in California has been uneven, and depending what region of the state a business is located contributes to how much economic activity is taking place. The survey comments seemed to bear that out. "Forecast for work is amazing," wrote on respondent, while another said glumly, "no money, no work." Yet another provided a bit more detail: "The decrease in public works (Caltrans specifically) will impact the market as a whole. Strengthening private works opportunities will continue to boost and offset the impact of diminishing Caltrans projects." Agency responses were similarly mixed. "Can't get any worse than it is," said one, while another state agency representative wrote, "I work for Caltrans. Project funding levels and workload have been in decline for several years. 2015 will be about the same as last year." About 60 percent of funding for transportation in California comes from local sources, with state and federal funds making up most of the rest. Industry and agency representatives both worried about the loss of experienced workers, either through layoffs or retirements, and the high cost of doing business. Said one agency representative, "No succession planning for upcoming vacancies due to retirements." Still, coming on the heels of years of cutbacks, some agency personnel noted that it presented an opportunity to streamline and make operational efficiencies. Commented one: "We've made some organizational changes due to retirements, and I expect our operation will run better. We've also hired two young whippersnappers to support our senior engineering staff." About one-third of survey respondents were agency representatives, all from California. Overall, however, agency respondents were less optimistic than their private-industry counterparts, with only 38 percent saying next year will be better, 24 percent saying it will be worse and 37 percent predicting it would be about the same. To read the story about last year's survey results, click HERE. More detailed economic forecast information will be featured in the 2015 Forecast Issue of CalAPA's official magazine, California Asphalt, which will hit mailboxes in January. |